U.S. Department of Justice

Office of Community Oriented Policing Services

www.cops.usdoj.gov Fact Sheet

Consultant/Contractor 

Rate Information 

Grantee Guidelines on Consultant Rate 

Approval Requests 

Compensation for individual consultant services procured under a COPS 

grant must be reasonable and allocable in accordance with 2 C.F.R. Part 225 

(OMB Circular A-87) (Cost Principles for State, Local, and Indian Tribal 

Governments), 2 C.F.R. 220 (OMB Circular A-21) (Cost Principles for 

Educational Institutions), 2 C.F.R. Part 230 (OMB Circular A-122) (Cost 

Principles for Non-Profit Organizations), and 48 C.F.R. Part 31.000, et seq. 

(FAR 31.2) (Cost Principles for Commercial Organizations), as applicable, and 

consistent with that paid for similar services in the marketplace.

Unless otherwise approved by the COPS Office, approved consultant rates will 

be based on the salary a consultant receives from his or her primary employer, 

as applicable, up to $550 per day. If individuals receive fringe benefits from 

their primary employer, such fringe benefit costs should not be included in 

the calculation of consultant rates. For consultant or contractor rates which 

exceed $550 per day, the COPS Office requires written justification if the 

consultants or contractors are hired through a noncompetitive bidding process. 

The grantee agency must provide justification for any such rate in excess 

of $550 per day and receive COPS Office approval of that rate before 

drawing down grant funds. Any jurisdiction that does not provide sufficient 

written justification will be limited to $550 per day for each consultant and/

or contractor. Please note that this does not mean that the rate can or should be 

$550 for all consultants. 

Note: Consultant and contractor daily rates do not include travel

or subsistence, but may include preparation, evaluation, and travel time.

Guidance for requesting a consultant rate based on employment

a. Consultants Associated with Educational Institutions (including 

state-run educational institutions). If representing the academic 

institution, the maximum rate of compensation that will be allowed is the 

consultant’s academic salary projected for 12 months, divided by 260. 

These individuals normally receive fringe benefits which include sick leave 

for a full 12-month period, even though they may only work 9 months 

per year in their academic positions. This does not apply to individuals 

providing consultant work outside of their academic commitments. In such 

cases, the rate of compensation will be based on reasonable cost principles 

and requires documentation supporting the requested rate.

"Compensation for individual consultant 

services procured under a cops grant 

must be reasonable, allocable, and 

consistent with that paid for similar 

services in the marketplace. The grantee 

agency must provide justification for any 

consultant rate in excess of $550 per day 

and receive COPS Office approval of that 

rate before drawing down grant funds."
b. Consultants Employed by State and Local Government. Compensation for 

these consultants will be allowed only when the unit of government will not provide 

these services without cost. If a state or local government employee is providing 

services under a federal grant and is representing his or her agency without pay 

from its respective unit of government, the rate of compensation is not to exceed 

the daily salary rate for the employee paid by the unit of government. If the state 

or local government employee is providing services under a federal grant and 

is not representing his or her agency, the rate of compensation is based on the 

necessary and reasonable cost principles. Please note that under the nonsupplanting 

requirement of the COPS statute, COPS grant funds may not be used to supplant 

(replace) local funding which otherwise would have been spent on consultants 

employed by state and/or local government. The statute bars federal funding 

of existing consultants and also of newly hired consultants that a community is 

committed to fund in the absence of a COPS grant.

c. Consultants Employed by Commercial and Not-For-Profit Organizations.

These organizations are normally subject to competitive bidding procedures. Thus, 

if they have been selected through competitive bidding, they are not subject to the 

$550 per day maximum compensation threshold. In those cases where an individual 

has authority to consult without employer involvement, the rate of compensation 

should not exceed the individual’s daily salary rate paid by his or her employer, 

subject to the $550 limitation.

To request approval of a consultant rate in excess of $550 per day, please submit 

the signed request on grantee department letterhead, and include the agency 

ORI and the grant number for which the approval is being sought.

Please include the following:

» Description of the services to be provided by the consultant(s) or contractor(s), 

including the following:

• The number of days and hours to be worked by each consultant/contractor

• The daily rate of each consultant/contractor that exceeds $550/day (indicate 

fringe benefits, if applicable) 

» A resume or curriculum vitae (CV) for each consultant or contracted individual 

whose rate exceeds $550 per day. 

» Documented prior instances when a similar rate has been charged by or paid to the 

consultant/contractor.

» If the consultant is not self-employed and has a primary employer, documentation 

showing that the requested daily rate is proportionate to the consultant’s regular 

salary (e.g. pay stubs, letter from employer, etc.).

» Optional: You may submit other important information about the consultant(s) 

or contractor(s) at this time, such as letters of reference; lists of any relevant 

publications, papers, or honors; advanced experience as a practitioner or academic 

in the subject area; advanced training relating to the focus of your project; and/or 

any unique circumstances which you feel should be considered as the COPS Office 

reviews your proposed consultant/contractor rates.

To request approval of a consultant/contractor rate in excess of $550 per day, please 

return this information to your Grant Program Specialist or project manager as soon as 

possible to expedite the consultant/contractor rate review process. 

Contact COPS

For more information about COPS Office programs and resources, please call the COPS 

Office Response Center at 800.421.6770, or visit COPS Online at www.cops.usdoj.gov.

May 2009

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